The Omaha World-Herald (www.omaha.com) recently published a news article about consumer-directed health care (CDHC). Authored by Steve Jordon, it presented a couple of companies that had success in their workplace. Jordon is clearly taking a stance in favor of the newer CDHC style plans.

More interestingly, Jordon finished the piece with a quick summary of notable events in the evolution of the health insurance system here. read the whole article here

Health Insurance Evolution In America

1910s: “Sickness” insurance, similar to today’s disability insurance, gains popularity to replace wages lost because of illness.

1910: Abraham Flexner’s Carnegie Foundation report criticizes standards of medical care, training of physicians and other practices.

1913: American College of Surgeons is established, sets standards for members and hospital accreditation, leading to higher fees for services.

1920: Compulsory health insurance proposal by American Association for Labor Legislation fails.

1920s: Rise of effective medical treatments and medical licensing standards leads to higher costs; shift to urban living brings more hospital demand.

1927: Committee on the Costs of Medical Care formed, reports that hospital expenses can burden families.

1929: Dallas teachers form Blue Cross to provide 21 days of hospitalization for a fixed $6 payment; similar prepaid hospital plans urged by the American Hospital Association.

1934: California Physicians Service operates first prepayment plan for physician services, a precursor to Blue Shield, open to employees earning less than $3,000 a year at a cost of $1.70 per month.

1935: Congress defeats proposed national health plan.

1940s: Commercial insurers enter health market after the Blues’ success in group insurance.

World War II: Employers, subject to wage controls, compete for workers by offering insurance.

1943: IRS administrative ruling says payments to health insurers are not taxable as employee income.

1945: War Labor Board rules that employers can’t modify or cancel group insurance plans during the contract period.

1949: National Labor Relation Board rules that insurance benefits are “wages” subject to collective bargaining; Congress defeats national health insurance proposal.

1951: 82 million people covered by commercial plans or Blue Cross and Blue Shield.

1954: IRS exempts health plan payments from taxable income.

1958: 75 percent of Americans have private health insurance coverage.

1965: Congress enacts Medicare for the elderly and Medicaid for low-income people.

1985: To protect employees who lose group coverage, Congress enacts COBRA, named for the Consolidated Omnibus Budget Reconciliation Act.

1994: Clinton national health plan defeated.

1996: Congress enacts Health Insurance Portability and Accountability Act to let employees keep insurance when they change jobs, among other provisions.

1997: Congress enacts Children’s Health Insurance Program to cover children from low-income families.

Late 1990s: Discussions on consumer-directed health care begin.

2003: President Bush signs law that expands health savings accounts.

2005: Congress adds drug benefits through Medicare Part D.

2006: Massachusetts passes mandatory health insurance law.

2007: Bush proposes changes in tax laws to “level the field” for nongroup insurance.

Topics: Health Insurance, Healthcare Reform, Federal Reform |

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